Why do I keep losing money at forex?

[malaguti]

or lots of small wins and a few big losses... Forex allows us to be truly free

and broke with that strategy Kaya...

 

[safvan]

Why can't i win in vegas?

 

[neil]

Risk and rewards, we can loose more times then we win and still make a good end of year profit, we can win many more then we loose but record a yearly lose.. its about loosing less percentage then we win overa, noise aside if we don't have a r:r strategy nailed then that we well and truly are.. can you cope better with lots small wins and small losses, few big wins but lots of small looses, or lots of small wins and a few big losses... Forex allows us to be truly free, but with freedom mistakes and stupidity have direct consequences..

Peace and pips

Lose (not to win)
Loss ( not a win)
Losing ( not winning)
overall
nonsensical literal construction (highlighted in Cyan)
..........................................................
Well - it passes the time folks

 

[kaya75]

Lose (not to win)
Loss ( not a win)
Losing ( not winning)
overall
nonsensical literal construction (highlighted in Cyan)
..........................................................
Well - it passes the time folks

rofl, iz mint, init! Brilliant - back 2 skool :smart: cross curriculum literacy was never a strong point!
Peace and pips

 

[forexkunta]

I tend to agree about the trading time. The first 2 years you are looking for a method to help you get in and out of trades. The next 2 years, you are basically learning to listen to your gut. I have finally begun to get profitable after about 4 years of trading. And that is with the advantage of the Elliott Wave theory. My biggest problem has been the big one that most people have to learn. "Patience" You must learn to let the market come to you and not chase it. This is the most difficult part of trading, in my experience. Good luck, and keep in mind, that you cannot shortcut the time in front of a chart. When you get to the point of divorce, you still have a ways to go. If I had it to do over, I would have run from the FX markets as fast as possible. Unfortunately, it gets under your skin. It is like crack. You have to have it!!!!!!
Good Luck!

It's impossible to say why you are in this predicament as there is insufficient information in your post. It could be that you don't have an edge proven across many 100's - 000's of times it has set-up, or that you ahve the wrong money amangemnet startegy with that edge, or that you have not mastered the psychological challenges that trading can present us with, or a combination of both or all three reasons.

Everyone has their own view of the market - whether it be that it is chaotic or random or has form - like elliot waves, but I think you are wrong in your central assertions that '...nobody trading forex makes any money in the long run..' and that you '... think it is statistically impossible to win at a game of random incremental price movements after paying a spread..'

The trading psychologist Dr Alex Elder descibes an edge as an ' Island of order in a sea of random chaos ' and I tend to concur with this, - the market does sometimes have discernable repeating patterns and ' form ' and from these an edge can be derived but of course you need to master the psychological challenges to actually trade that edge profitably and consistently too and this may take even longer.

You intimate that your strike rate is always slightly worse than 50/50 ie 50% ish and I presume you mean winning trades as a % of total trades ? Do you know if your edge has a positive expectancy? There are several other things that you need to know about your edge and keep up to date / monitor as results occur in order that you can optimise money and risk management, know it's typical and maximum metrics, anand crucially ensure that it is still working.

I would also doubt that 1 year is anywhere near long enough and that you should be thinking more 3-5 before you may just start to see some results.

G/L

 

[neil]

It's impossible to say why you are in this predicament as there is insufficient information in your post. It could be that you don't have an edge proven across many 100's - 000's of times it has set-up, or that you ahve the wrong money amangemnet startegy with that edge, or that you have not mastered the psychological challenges that trading can present us with, or a combination of both or all three reasons.

Everyone has their own view of the market - whether it be that it is chaotic or random or has form - like elliot waves, but I think you are wrong in your central assertions that '...nobody trading forex makes any money in the long run..' and that you '... think it is statistically impossible to win at a game of random incremental price movements after paying a spread..'

The trading psychologist Dr Alex Elder descibes an edge as an ' Island of order in a sea of random chaos ' and I tend to concur with this, - the market does sometimes have discernable repeating patterns and ' form ' and from these an edge can be derived but of course you need to master the psychological challenges to actually trade that edge profitably and consistently too and this may take even longer.

You intimate that your strike rate is always slightly worse than 50/50 ie 50% ish and I presume you mean winning trades as a % of total trades ? Do you know if your edge has a positive expectancy? There are several other things that you need to know about your edge and keep up to date / monitor as results occur in order that you can optimise money and risk management, know it's typical and maximum metrics, anand crucially ensure that it is still working.

I would also doubt that 1 year is anywhere near long enough and that you should be thinking more 3-5 before you may just start to see some results.

G/L

I agree - it's a long road from reading about it, trying out every indicator etc. I wish I had come across sites like T2W and others when I started out, but they didn't exist ( or I was unaware). I don't know about others but I have little apart from price on a chart and an awareness of support etc. Also,until you actually trade live, you will not appreciate how important your psychological make up is in relation to trading.
Sites like T2w are a great help to newer entrants to the market IF they learn to ignore the get rich snake oil peddlars, the psychologically damaged and Walter Mitty's that litter all trading sites.

 

[NVP]

I tend to agree about the trading time. The first 2 years you are looking for a method to help you get in and out of trades. The next 2 years, you are basically learning to listen to your gut. I have finally begun to get profitable after about 4 years of trading. And that is with the advantage of the Elliott Wave theory. My biggest problem has been the big one that most people have to learn. "Patience" You must learn to let the market come to you and not chase it. This is the most difficult part of trading, in my experience. Good luck, and keep in mind, that you cannot shortcut the time in front of a chart. When you get to the point of divorce, you still have a ways to go. If I had it to do over, I would have run from the FX markets as fast as possible. Unfortunately, it gets under your skin. It is like crack. You have to have it!!!!!!
Good Luck!

Agreed

The market is not an ATM machine........

and most people dont understand at all what the market is doing.......

NVP

 

[myLIVEaccount]

Very well written, I would just replace your 2 years for 3 years in my case

I tend to agree about the trading time. The first 2 years you are looking for a method to help you get in and out of trades. The next 2 years, you are basically learning to listen to your gut. I have finally begun to get profitable after about 4 years of trading. And that is with the advantage of the Elliott Wave theory. My biggest problem has been the big one that most people have to learn. "Patience" You must learn to let the market come to you and not chase it. This is the most difficult part of trading, in my experience. Good luck, and keep in mind, that you cannot shortcut the time in front of a chart. When you get to the point of divorce, you still have a ways to go. If I had it to do over, I would have run from the FX markets as fast as possible. Unfortunately, it gets under your skin. It is like crack. You have to have it!!!!!!
Good Luck!

 

[2George]

Has anyone been helped via this thread?
This is my solution to losing -
1. Get a system you understand and can backtest for confidence. Make sure your indicators give you the best advantage - scalping is the most stressful but the most profitable if that is your aim.
2. Trade demo first then live with tiny amounts to start with and be patient, be very patient.
3. Stick to your sytem as change creates doubt.
If I can give anyone a single tip that will help trading profitably it will be the drawing of traps/diagonals as chart management if scalping is the chosen method of trading.
Indicators are a subject to be learned, I prefer the CCI and MACD but others use their own indicators - and some use nothing but price. To each their own.
I've attached what I believe to be a good alert for entry consideration and an illustration chart with trap lines drawn as chart management on the Dow 5m.
Finally I attach a RenkoRange Indicator that has the advantage of having exact stops as the range setting can be changed to suit - because it is 'fed' through a 1m live chart, the offline chart that it uses as live needs to build up a history so if anyone uses this they need to be patient. Also I've attached a chart with the settings on 10 points (every Renko brick = 10 points) so that the difference can be seen between the 5m and the Renko chart of the Dow.
I trust this will help keep more profits.
Regards
George
PS
Obviously can be traded on FX as well as other charts, commodities, Indices etc.

 

[forexkunta]

I hear ya. Everyone is different. Some never get profitable, and just continue to throw money down the deep dark hole.

Very well written, I would just replace your 2 years for 3 years in my case

 

[forexkunta]

WOW,
My eyez are hurting! A 21sma on any chart will make someone very profitable. It just has to be used consistently. Personally I use a 21 and 84 sma on my charts and when PA is above both then I go long only. When below both, I go short only.
It really is that simple!

Has anyone been helped via this thread?
This is my solution to losing -
1. Get a system you understand and can backtest for confidence. Make sure your indicators give you the best advantage - scalping is the most stressful but the most profitable if that is your aim.
2. Trade demo first then live with tiny amounts to start with and be patient, be very patient.
3. Stick to your sytem as change creates doubt.
If I can give anyone a single tip that will help trading profitably it will be the drawing of traps/diagonals as chart management if scalping is the chosen method of trading.
Indicators are a subject to be learned, I prefer the CCI and MACD but others use their own indicators - and some use nothing but price. To each their own.
I've attached what I believe to be a good alert for entry consideration and an illustration chart with trap lines drawn as chart management on the Dow 5m.
Finally I attach a RenkoRange Indicator that has the advantage of having exact stops as the range setting can be changed to suit - because it is 'fed' through a 1m live chart, the offline chart that it uses as live needs to build up a history so if anyone uses this they need to be patient. Also I've attached a chart with the settings on 10 points (every Renko brick = 10 points) so that the difference can be seen between the 5m and the Renko chart of the Dow.
I trust this will help keep more profits.
Regards
George
PS
Obviously can be traded on FX as well as other charts, commodities, Indices etc.

 

[jungles]

nice work on the account

Very well written, I would just replace your 2 years for 3 years in my case

 

[jungles]

agreed, it can be that simple, esp. once you get good at reading PA and SR

WOW,
My eyez are hurting! A 21sma on any chart will make someone very profitable. It just has to be used consistently. Personally I use a 21 and 84 sma on my charts and when PA is above both then I go long only. When below both, I go short only.
It really is that simple!

 

[forexkunta]

Here is another example of a method that works very well. Everything is standard to any trading platform. The channel is constructed with 21sma of the high, 21 sma of the low, and a 5sma trigger. When the 5sma drops below the lower channel line, then go short, and vice versa for longs. Take profit as you see fit. Put is on any chart and look at how pa reacts to the channel. This is actually my favorite. I use it in conjunction with Elliott Wave counts on the PA. There will be losing trades!!!!!!!! No system is perfect!

 

[resistance]

But these kind of systems are good if you use EA because you cannot just keep monitoring the EMA and when it will be triggered. It will eat lots of time and EA will also take the false signals for trading.

 

[forexkunta]

Typical, all the reasons why it won't work.

But these kind of systems are good if you use EA because you cannot just keep monitoring the EMA and when it will be triggered. It will eat lots of time and EA will also take the false signals for trading.